How much does it cost to heat and cool a 2,000 sq ft home in Texas?

In Texas (16¢/kWh via ERCOT / Oncor / CenterPoint), a 2,000 sq ft home averages $434/year ($36/month) with a high-efficiency heat pump, $467/year with a natural gas furnace and central AC, and $1,087/year with electric baseboards.

Are heat pumps cheaper to run than gas furnaces in Texas?

At Texas's natural gas rate of $1.35/therm, the economic break-even electricity price for a COP 3.1 heat pump is 15.5¢/kWh. Comparing this against Texas's residential electricity rate of 16¢/kWh determines annual operating savings.

Texas Heating & Cooling Cost Calculator (2026)

2,000 Sq Ft Heat Pump Bill

$36/mo

TX Electricity / Gas Rate

16¢ / $1.35

15-Yr Savings vs Baseboard

+$6,195

Texas Annual Heating & Cooling Bills by Home Size

In Texas, a 2,000 sq ft home averages $434/year ($36/mo) using a cold-climate heat pump ($235/yr winter heating + $199/yr summer cooling), compared to $467/year with a natural gas furnace and $1,087/year with electric baseboards.

Home Size	Heat Pump (COP 3.1)	Gas Furnace + AC	Baseboard + Window AC	15-Yr Heat Pump Savings
1,000 Sq Ft	$217/yr ($18/mo)	$234/yr ($20/mo)	$544/yr ($45/mo)	+$1,305
1,500 Sq Ft	$326/yr ($27/mo)	$350/yr ($29/mo)	$816/yr ($68/mo)	+$3,750
2,000 Sq Ft	$434/yr ($36/mo)	$467/yr ($39/mo)	$1,087/yr ($91/mo)	+$6,195
2,500 Sq Ft	$543/yr ($45/mo)	$584/yr ($49/mo)	$1,359/yr ($113/mo)	+$8,640
3,000 Sq Ft	$652/yr ($54/mo)	$701/yr ($58/mo)	$1,631/yr ($136/mo)	+$11,085
3,500 Sq Ft	$760/yr ($63/mo)	$818/yr ($68/mo)	$1,903/yr ($159/mo)	+$13,545

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Verify 2026 Federal 25C Tax Credit & ERCOT / Oncor / CenterPoint rebate eligibility and compare turnkey contractor pricing for a 3.0-Ton system (2,000 sq ft).

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